Latest news with #TetraTech
Yahoo
21 hours ago
- Business
- Yahoo
2 Reasons to Like TTEK and 1 to Stay Skeptical
Over the past six months, Tetra Tech's shares (currently trading at $35.32) have posted a disappointing 17.7% loss while the S&P 500 was down 1.8%. This may have investors wondering how to approach the situation. Following the drawdown, is now the time to buy TTEK? Find out in our full research report, it's free. With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ:TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Tetra Tech's sales grew at an exceptional 13.2% compounded annual growth rate over the last five years. Its growth surpassed the average business services company and shows its offerings resonate with customers. In addition to reported revenue, backlog is a useful data point for analyzing Industrial & Environmental Services companies. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into Tetra Tech's future revenue streams. Tetra Tech's backlog punched in at $4.31 billion in the latest quarter, and over the last two years, its year-on-year growth averaged 15.6%. This performance was fantastic and shows the company has a robust sales pipeline because it is accumulating more orders than it can fulfill. Its growth also suggests that customers are committing to Tetra Tech for the long term, enhancing the business's predictability. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. As you can see below, Tetra Tech's margin dropped by 8.7 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Tetra Tech's free cash flow margin for the trailing 12 months was 5.1%. Tetra Tech's positive characteristics outweigh the negatives. After the recent drawdown, the stock trades at 24.6× forward P/E (or $35.32 per share). Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
a day ago
- Business
- Yahoo
Earnings To Watch: ABM (ABM) Reports Q1 Results Tomorrow
Facility services provider ABM Industries (NYSE:ABM) will be reporting results tomorrow before the bell. Here's what you need to know. ABM met analysts' revenue expectations last quarter, reporting revenues of $2.11 billion, up 2.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates and organic revenue in line with analysts' estimates. Is ABM a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting ABM's revenue to grow 2.5% year on year to $2.07 billion, in line with the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ABM has missed Wall Street's revenue estimates twice over the last two years. Looking at ABM's peers in the industrial & environmental services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 39.9%, beating analysts' expectations by 17%, and Tetra Tech reported revenues up 4.9%, topping estimates by 6.6%. CECO Environmental traded up 23.9% following the results while Tetra Tech was also up 13%. Read our full analysis of CECO Environmental's results here and Tetra Tech's results here. There has been positive sentiment among investors in the industrial & environmental services segment, with share prices up 6.1% on average over the last month. ABM is up 5.7% during the same time and is heading into earnings with an average analyst price target of $56.80 (compared to the current share price of $52.71). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
BBC News
4 days ago
- Business
- BBC News
Stoke-on-Trent action plan after council misses housing targets
Council bosses in Stoke-on-Trent have agreed a new plan for building more homes in the city after failing to hit increasing government the three years up to 2022-23, a total of 1,397 homes were built in Stoke-on-Trent, compared with a goal of 1,536; an annual average of more than target is set to rise to 948 homes a year, meaning the council will be expected to more than double its recent in the city's new action plan include identifying more sites for housing, making the planning process more efficient and providing support for developers. According to analysis carried out by consultants from Tetra Tech, the city faces challenges such as a lack of available sites, with relatively low house prices in some local markets reducing the viability of Robinson, the city council's cabinet member for housing, planning and governance, said some developers had also failed to deliver after being granted planning permission."We are committed to giving residents more choice by providing them with a wide range of high-quality and affordable housing options," he said. "Our action plan sets out the steps we are taking to improve housing delivery in the city, enabling us to provide new homes for people of all backgrounds."According to the plan, Stoke-on-Trent had been over-delivering new homes compared to targets until 2021-22, when the city's housing requirement "increased significantly". Pre-application advice services are to be improved as part of the council said it would unlock the delivery of new homes on land it owns through its housing company Fortior Homes and in collaboration with Homes England across 22 also pledged to increase the monitoring of sites where construction had stalled or where permission was about to lapse. This news was gathered by the Local Democracy Reporting Service, which covers councils and other public service organisations. Follow BBC Stoke & Staffordshire on BBC Sounds, Facebook, X and Instagram.
Business Mayor
19-05-2025
- Business
- Business Mayor
Tetra Tech Takes a Hit – Los Angeles Business Journal
Pasadena-based engineering and consulting firm Tetra Tech Inc. took a major hit in the first quarter with the shutdown of its largest client, the U.S. Agency for International Development. But the company still managed to post one of its strongest quarterly earnings results as it found new business elsewhere. In its May 8 quarterly earnings call, Dan Batrack, Tetra Tech's chief executive, said the USAID shutdown cost the company about $1.1 billion worth of contract awards that had been part of the company's project backlog. The shutdown also forced the company to take a $92 million impairment charge. Yet Tetra Tech still managed to post one of its better quarters for earnings, with the third-highest earnings per share and operating revenue marks in the company's history, a feat all the more remarkable considering January through March is typically the slowest time of the year for the company. 'We just had one of the most interesting quarters in the history of the company,' Batrack told analysts at the outset of the earnings conference call. The company's history dates back to 1966. 'Never have we seen our largest client by revenue essentially disappear within just one quarter,' he added. 'If you'd asked me 20 years ago what would have been the impact for quarterly results of this happening, I'm not sure I could have told you, but it certainly wouldn't have been good,' Batrack continued. 'But today, in this quarter, through the incredible diversity of our clients, diversity of the services we provide and the geographies that we operate in, we had one of the best quarters in the company's history.' Indeed, net revenue (not including contract dollars passed through to subcontractors) rose 5% during the quarter to $1.1 billion compared with the same quarter last year, while operating income rose 11% to $130 million – despite the loss of USAID work. Investors reacted favorably, sending Tetra Tech shares up 13% on May 8, the trading session after the earnings release and conference call. The stock has not moved significantly since then. Tetra Tech's challenges began the day President Donald Trump took office for his second term. One of the first executive orders he signed froze all foreign aid and called for a review of aid policy. Batrack said Trump's executive order resulted in immediate 'stop-work' orders for most of its USAID contracts. Its employees working on those contracts were effectively in limbo, though they were still employed by the company. Then, the Elon Musk-led Department of Government Efficiency, or DOGE, went through USAID operations, and in early February cancelled more than 100 contracts, including more than 20 contracts with Tetra Tech. The canceled contracts ranged in size from $10.2 million to $95.5 million. And then on Feb. 27, Secretary of State Marco Rubio announced that approximately 5,200 of USAID's 6,200 programs were being eliminated, with the rest transferred to the Rubio-led State Department. USAID was effectively shuttered. Batrack said that was the day the status of the Tetra Tech workers on those eliminated contracts went to 'termination for convenience.' He noted that the company incurred costs for that five-week period between the Jan. 20 date the stop-work orders went out and the Feb. 27 date when the contracts were terminated. He did not disclose what happened to the workers on those contracts. Tetra Tech took those contracts out of its project backlog, which consists of work that the company has contracts for but not yet begun. And for the first time since the USAID episode began, Batrack put a number on the value of those contracts. 'Tetra Tech's updated backlog is now…$4.31 billion,' he said. 'This $4.3 billion captures the de-obligation of approximately $1.1 billion in USAID and Department of State projects.' The company also took a non-cash, goodwill impairment charge of $92.4 million during the quarter. No specifics were offered. Not all of Tetra Tech's USAID work was eliminated. About $220 million remains, most of that for work in Ukraine that is part of a massive $450 million multi-year contract. USAID had been Tetra Tech's largest single client, representing nearly 10% of all net revenue and about one-third of all the company's work for the federal government. Yet for the first three months of this year, net revenue from federal government work still grew 1% compared to the same period last year as work for other federal agencies grew 16%. Tetra Tech's biggest victory in this sector came in March when the company announced it had won a slice of work on three contracts for environmental engineering services with the U.S. Army Corps of Engineers Honolulu District worth as much as $416 million. Each of these contracts involve multiple companies that are on call for individual projects as they come up. Tetra Tech also announced and added to its backlog four other contracts with the Army Corps of Engineers during the quarter, including one with the Corps' Los Angeles district. Most of this work is for ongoing environmental and engineering services. The Army Corps of Engineers is now Tetra Tech's largest single client. Staff Reporter Mark Madler contributed to this article.
Yahoo
08-05-2025
- Business
- Yahoo
Tetra Tech (NASDAQ:TTEK) Surprises With Q1 Sales, Stock Soars
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Tetra Tech's annualized revenue growth of 20% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. As you can see below, Tetra Tech's sales grew at an exceptional 13.2% compounded annual growth rate over the last five years. This is a great starting point for our analysis because it shows Tetra Tech's demand was higher than many business services companies. With $4.56 billion in revenue over the past 12 months, Tetra Tech is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ:TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide. The company lifted its revenue guidance for the full year to $4.77 billion at the midpoint from $4.57 billion, a 4.4% increase Is now the time to buy Tetra Tech? Find out in our full research report . Environmental engineering firm Tetra Tech (NASDAQ:TTEK) announced better-than-expected revenue in Q1 CY2025, with sales up 4.9% year on year to $1.10 billion. On top of that, next quarter's revenue guidance ($1.15 billion at the midpoint) was surprisingly good and 4.2% above what analysts were expecting. Its GAAP profit of $0.02 per share was 93.4% below analysts' consensus estimates. Story Continues Tetra Tech Year-On-Year Revenue Growth We can better understand the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Tetra Tech's backlog reached $4.09 billion in the latest quarter and averaged 15% year-on-year growth over the last two years. Because this number is lower than its revenue growth, we can see the company fulfilled orders at a faster rate than it added new orders to the backlog. This implies Tetra Tech was operating efficiently but raises questions about the health of its sales pipeline. Tetra Tech Backlog This quarter, Tetra Tech reported modest year-on-year revenue growth of 4.9% but beat Wall Street's estimates by 6.6%. Company management is currently guiding for a 3.6% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 1.6% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Adjusted Operating Margin Tetra Tech has done a decent job managing its cost base over the last five years. The company has produced an average adjusted operating margin of 11.4%, higher than the broader business services sector. Analyzing the trend in its profitability, Tetra Tech's adjusted operating margin rose by 1.2 percentage points over the last five years, as its sales growth gave it operating leverage. Tetra Tech Trailing 12-Month Operating Margin (Non-GAAP) This quarter, Tetra Tech generated an adjusted operating profit margin of 11.8%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Tetra Tech's EPS grew at an unimpressive 6% compounded annual growth rate over the last five years, lower than its 13.2% annualized revenue growth. However, its adjusted operating margin actually expanded during this time, telling us that non-fundamental factors such as taxes affected its ultimate earnings. Tetra Tech Trailing 12-Month EPS (GAAP) In Q1, Tetra Tech reported EPS at $0.02, down from $0.28 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street expects Tetra Tech's full-year EPS of $0.69 to grow 98.2%. Key Takeaways from Tetra Tech's Q1 Results We were impressed by how significantly Tetra Tech blew past analysts' revenue and EBITDA expectations this quarter. We were also excited it raised its full-year revenue and EPS guidance. On the other hand, its backlog declined and fell short of Wall Street's estimates. Overall, we think this was still a decent quarter with some key metrics above expectations. The stock traded up 6.7% to $32.95 immediately following the results. Indeed, Tetra Tech had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
